Australian food giant Goodman Fielder has bought New Zealand milk producer Independent Dairy Producers (IDP) for an undisclosed sum.
The company also announced today (5 July) a milk supply contract with a New Zealand retailer and a partnership with The Grate Kiwi Cheese Company (GKC).
Goodman Fielder said the acquisition of IDP would increase its presence in New Zealand’s “route trade” where the company sells its Cow and Gate brand.
Goodman Fielder’s cheese partnership with GKC will see the company install cutting and wrapping equipment at the New Zealand company’s Auckland plant.
“This will not only provide us with a secure supply base but will also allow us to develop some innovative new packaging solutions for our range of consumer cheeses,” said Goodman Fielder CEO Peter Margin.
Goodman Fielder’s milk supply deal was signed with Progressive Stores, a New Zealand business owned by Australia’s largest retailer Woolworths. Progressive accounts for around 44% of New Zealand’s grocery market.
“Progressive Stores will now stock Goodman Fielder’s Meadowfresh milk as the major proprietary milk brand in the majority of their stores,” Margin added.